Bangladesh: Second Public-Private Infrastructure Development Facility

Sovereign Project | 42180-013 Status: Active

Summary

ADB is helping Bangladesh finance private sector-led infrastructure projects. The project will provide a $100 million credit line to the state-owned Infrastructure Development Company Ltd. for investment in projects with a minimum cost of $10 million. It will also help finance off-grid renewable energy systems for households and small to medium-sized businesses in rural areas.

Latest Project Documents

Consulting Notices See also: CMS

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Procurement Notices See also: Operational Procurement

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Procurement Documents

None currently available.


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Project Name Second Public-Private Infrastructure Development Facility
Project Number 42180-013
Country Bangladesh
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 3045-BAN: Second Public-Private Infrastructure Development Facility
Ordinary capital resources US$ 100.00 million
Loan 3046-BAN: Second Public-Private Infrastructure Development Facility
Asian Development Fund US$ 10.00 million
Loan: Second Public-Private Infrastructure Development Facility
Japan International Cooperation Agency US$ 96.00 million
World Bank US$ 99.50 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Partnerships
Private sector development
Sector / Subsector

Finance - Infrastructure finance and investment funds

Gender Equity and Mainstreaming Some gender elements
Description
Project Rationale and Linkage to Country/Regional Strategy
Impact

Project Outcome

Description of Outcome
Progress Toward Outcome

Two infrastructure subprojects have been financed through IDCOL in the power and transport sectors. ADB approved proposal for a 52.2MW power plant with total project cost of $50.08 million, of which ADB's share was $15 million. ADB also approved financing for a land port with capacity of 120,000 TEU. The total project cost for the port is $35.79 million, with ADB share of $10 million.

GHG emissions reduction will be measured during review mission.

Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)

1. Availability of long-term debt financing

(i) Financial closures conducted for two subprojects financed through IDCOL, one in the power sector and another in the transport sector. ADB approved proposal for a 52.2MW power plant with total project cost of $50.08 million, of which ADB's share was $15 million. ADB also approved financing for a land port with capacity of 120,000 TEU. The total project cost for the port is $35.79 million, with ADB share of $10 million.

(ii) Mobilization of additional private capital is not yet due to measure.

(iii) An independent Risk Manager was recruited by IDCOL.

2. Availability and accessibility of financing for SHS

(i) 46,758 SHS installations financed through IDCOL as of December 2015.

Geographical Location

Safeguard Categories

Environment FI-C
Involuntary Resettlement FI-C
Indigenous Peoples FI-C

Summary of Environmental and Social Aspects

Environmental Aspects The project is classified as financial intermediary for the environment, involuntary resettlement, and indigenous peoples. As the proceeds from the proposed ordinary capital resources loan will be used by one or more private sector sponsors to finance subprojects, there is a potential risk that some of those developers may not fully adhere to ADB's safeguard requirements during implementation. The project team will assess project-specific environmental impact assessment and/or resettlement plans as well as each sponsors' environmental management, involuntary resettlement, impacts on indigenous peoples arising from land acquisition, changes in land use, adherence to core labor standards, or restrictions of access to resources and social protection framework and policies, and assess where enhancements may need to be made by the company. IDCOL has adopted the environmental and social safeguard framework and improved its in-house capacity with ADB support.
Involuntary Resettlement

The project is classified as financial intermediary for the environment, involuntary resettlement, and indigenous peoples. As

the proceeds from the proposed ordinary capital resources loan will be used by one or more private sector sponsors to finance subprojects, there is a potential risk that some of those developers may not fully adhere to ADB's safeguard requirements during implementation. The project team will assess project-specific environmental impact assessment and/or resettlement plans as well as each sponsors' environmental management, involuntary resettlement, impacts on indigenous peoples arising from land acquisition, changes in land use, adherence to core labor standards, or restrictions of access to resources and social protection framework and policies, and assess where enhancements may need to be made by the company. IDCOL has adopted the environmental and social safeguard framework and improved its in-house capacity with ADB support.

Indigenous Peoples

The project is classified as financial intermediary for the environment, involuntary resettlement, and indigenous peoples. As

the proceeds from the proposed ordinary capital resources loan will be used by one or more private sector sponsors to finance subprojects, there is a potential risk that some of those developers may not fully adhere to ADB's safeguard requirements during implementation. The project team will assess project-specific environmental impact assessment and/or resettlement plans as well as each sponsors' environmental management, involuntary resettlement, impacts on indigenous peoples arising from land acquisition, changes in land use, adherence to core labor standards, or restrictions of access to resources and social protection framework and policies, and assess where enhancements may need to be made by the company. IDCOL has adopted the environmental and social safeguard framework and improved its in-house capacity with ADB support.

Stakeholder Communication, Participation, and Consultation
During Project Design tbd
During Project Implementation The Ministry of Finance (MOF), acting through its Economic Relations Division, is the executing agency while the Banking and Financial Institutions Division is the financial management agency, and IDCOL is the implementing agency of the Project. Policy direction and strategic oversight is provided by IDCOL''s board of directors. IDCOL''s project management unit, established under PPIDF I, monitors the day-to-day implementation of the loans. The same will build capacity within IDCOL in areas of monitoring exposure limits, process improvements, risk assessment, and analysis. Further, the project management unit will ensure compliance with state and national policies and IDCOL's environmental and social safeguard framework (ESSF) which ensures compliance with ADB safeguard policies and national norms.

Business Opportunities

Consulting Services not applicable
Procurement Advance contracting will be undertaken in accordance with established private sector or commercial practices, which are acceptable to ADB. For funding support under the IDCOL's credit facility, potential subborrower's issuance of invitations to bid under advance contracting will be subject to ADB approval. EA, IDCOL, and identified subborrowers have been (and will be) advised that approval of advance contracting does not commit ADB to finance the Project.

Responsible Staff

Responsible ADB Officer Bidyut Saha
Responsible ADB Department South Asia Department
Responsible ADB Division Bangladesh Resident Mission
Executing Agencies
Ministry of Finance
Economic Relations Division (ERD), MOF
Sher-e-Bangla Nagar, Dhaka_1207
Bangladesh

Timetable

Concept Clearance -
Fact Finding -
MRM 16 Jul 2013
Approval -
Last Review Mission -
Last PDS Update 01 Mar 2016

Loan 3045-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
17 Oct 2013 06 Apr 2014 12 Aug 2014 31 Jul 2019 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 375.50 Cumulative Contract Awards
ADB 100.00 17 Oct 2013 0.00 0.00 0%
Counterpart 80.00 Cumulative Disbursements
Cofinancing 195.50 17 Oct 2013 25.00 0.00 25%

Loan 3046-BAN

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
17 Oct 2013 06 Apr 2014 12 Aug 2014 31 Jul 2019 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 10.00 Cumulative Contract Awards
ADB 10.00 17 Oct 2013 0.00 0.00 0%
Counterpart 0.00 Cumulative Disbursements
Cofinancing 0.00 17 Oct 2013 7.13 0.00 78%

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

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